Saudi Basic Industries Corporation (SABIC) is engaged in manufacturing and sales of chemicals, polymers, plastics, agri-nutrients, and metal products globally. The company operates through three segments namely: Petrochemicals & Specialties, Agri-nutrients, and Hadeed.
Through the Petrochemicals & Specialties segment, the company offers polymers such as acrylonitrile-butadiene-styrene, metallocene polyethylene, polybutylene terephthalate, polyethylene terephthalate, polymethyl methacrylate, synthetic rubbers, etc., and caters to automotive, aviation, electronics, construction, alternative energy, and health care industries. In addition, the company offers engineering thermoplastic resins and compounds, ethylene oxide derivatives, composites, additives, functional surface substrates, and films and sheets, under brand names: NORYL, ULTEM, EXTEM, and LNP. The company also offers chemicals, including aromatics, ethanolamines, chlor-alkali, glycols, olefins and gases, linear alpha olefins, natural detergent alcohol, OXO alcohols and performance monomers, and oxygenates. Through its agri-nutrients segment, the company offers fertilizers consisting of urea, ammonia, and has a portfolio of nitrogen-based inorganic products. Through its Hadeed segment, the company manufactures steel products such as flat products and long products.
In March 2019, Saudi Aramco signed an agreement to acquire a 70% majority stake in Saudi Basic Industries Corporation from the Public Investment Fund of Saudi Arabia in a private transaction. The agreed purchase price for the shares is SAR 259.1 Billion (US$ 69.1 Billion).
Financial results in perspective
- Net income in 2018 was US$ 5.7 Billion
- Total assets were US$ 85 Billion at the end of 2018
- SABIC’s overall production increased from 72.7 Million metric tons in 2016 to 75.3 Million metric tons at the end of 2018
- SABIC recorded net profit of US$ 4.9 Billion in 2017 as compared to US$ 4.6 Billion in 2016, which was an increase of 4.4%. Sales revenues for 2017 totaled US$ 39.9 Billion, and total assets stood at US$ 86 Billion at the end of 2017.
- 1976: SABIC was established in 1976 by Royal Decree to develop petrochemical production
- 1982: The first of SABIC affiliate companies, HADEED (steel), began production
- 1984: SABIC is listed on the Saudi Stock Exchange, although the government maintains a 70% stake
- 1985: Ladene plastics brand was launched
- 1988: The company opened international marketing offices in New York, London, Tokyo, and Hong Kong
- 1997: The company opened its first foreign research and technology center in Houston, Texas, US; the company was restructured into five Strategic Business Units
- 2002: The company acquired the petrochemical business of Koninklijke DSM N.V.
- 2003: SABIC acquired StaMax B.V.
- 2008: SABIC and ExxonMobil signed an agreement for elastomers project in Saudi Arabia
- 2008: Sinopec and SABIC signed the Tianjin deal in China
- 2012: SABIC acquired a license to manufacture TDI and MDI (raw materials of polyurethane) from Mitsui Chemicals Inc.
- 2014: SABIC collaborated with SK Global Chemicals to produce high-performance PE products in Ulsan, South Korea, and Saudi Arabia
- 2016: SABIC and Saudi Arabian Oil Company combined their oil-to-chemicals projects
- 2017: SABIC acquired 50% stake in Saudi Petrochemical Company (SADAF), from its joint venture (JV) partner, Royal Dutch Shell plc, for US$ 820 Million
- 2018: The SABIC and ExxonMobil Chemical Co. form a JV for Gulf Coast Growth Ventures (GCGV) project
SABIC’s petrochemicals segment has undergone global transformation with major innovative production initiatives, joint ventures, new product launches, and structural changes to meet challenges of the circular economy
- In April 2018, Mitsubishi Chemical, Inc. and SABIC started joint production of methyl methacrylate (MMA) monomer and polymethyl methacrylate (PMMA) in Saudi Arabia. The joint venture is expected to manufacture 250,000 metric tons/year of MMA monomer, and 40,000 metric tons/year of PMMA.
- In October 2018, the company launched polypropylene lightweight breathable nonwoven fabrics for personal hygiene applications. The new product – SABIC PP 514M12 – can serve a wide range of potential end uses in personal hygiene applications.
- In April 2018, SABIC opened the first polyacetal (POM) plant in the Middle East as part of its growth strategy, supporting its vision 2030
The company focuses on delivering material performance and develop innovative solutions
- In February 2018, SABIC expanded capacity for ultem and noryl resin production
- In May 2018, the company introduced its next-generation THERMOCOMP HMD-D compounds in NPE 2018
- November 2018, the company established a new company – SABIC Agri-nutrient Investments – to consolidate all its equity shares and assets currently held in several companies specialized in the production of various agri-nutrient products
- In 2018, the company advanced its Transformation Program, which aims to enhance competitiveness, increase product portfolio, and accelerate growth
- SABIC was founded in 1976 and began production in 1981
- SABIC holds the maximum number of global patentse., over 11,700 in Saudi Arabia
- SABIC acquired numerous international companies:
- SABIC acquired DSM’s petrochemical business for 2.2 Billion € (US$ 1.9 Billion)
- SABIC acquired Huntsman’s Europe-based chemicals and polymers business for US$ 700 Million
- Company acquired General Electric’s plastics division for US$ 11.6 Billion
- SABIC is the world’s largest producer of MTBE, mono-ethylene glycol, polycarbonate, granular urea, polyphenylene, and polyetherimide, and is also the third-largest manufacturer of polyethylene and polypropylene
- The company focuses on providing accurate, compliant, and current product information and labeling to customers across the globe
- In 2018, 11 EHSS risk assessment workshops were completed involving approximately 300 individuals
- 369 technology projects were screened
- 52 REACH dossiers submitted
- SABIC’s Nusaned program was launched in January 2018, and is a core initiative designed to promote growth, diversification, and job creation in support of Vision 2030
- SABIC sponsored the second edition of the Ammar Initiative to support talented people with special needs, and was aligned with SABIC’s values and Saudi Vision 2030
- The company uses REACH- Reputation, Audience, Innovation, Strategy, and Endurance-to select (RAISE) programs that elevate SABIC’s Brand and promote values. RAISE prioritizes four responsible areas: Science and Technology Education, Environmental Protection, Health and Wellness, Water and Sustainable Agriculture, and also supports SABIC’ 2025 strategy and Saudi Arabia’s Vision 2030
Saudi Arabia Basic Industries Corporation: Production and Exports (Thousand Tons)
- In March 2019, Saudi Basic Industries Corporation intends to merge its two wholly-owned subsidiaries, Saudi Petrochemical Company (SADAF) and Arabian Petrochemical Company (PETROKEMYA), to enhance the efficiency and competitiveness of its global operations
- In June 2019, Exxon Mobil Corporation and SABIC announced plans to start construction of the petrochemical plant in Texas, US, in the third quarter. The 50/50 joint venture, called Gulf Coast Growth Ventures, will have capacity to produce 1.8 million metric tons a year, and will house a monoethylene glycol unit and two polyethylene units.
SABIC’s Strategy in Support of Vision 2030:
- Develop programs supporting local content creation, leveraging SABIC’s core strength in technology and IP, products, procurement, capabilities, assets, and commercial relationships
- Coordinate and synergize content-related initiatives across SABIC businesses, functions, and affiliates
- Develop mutually-beneficial partnerships with relevant third-parties, including national and overseas governments, financial institutions, and other commercial organizations
- Promote SABIC and Saudi Arabia to overseas investors with potential interest in localization initiatives
- Work with other Saudi organizations to disseminate best practices and cooperate for synergy and mutual benefit